Motorists will have to pay for every mile they drive to fund future Government projects, experts have said. There has been speculation a pay-per-mile tax will be introduced to replace falling revenue as electric and hybrid cars replace petrol and diesel – cutting the amount of money the Government gets from fuel duty.
The Department for Transport has said pay-per-mile is not currently being considered. But experts say it is ‘inevitable. Sir John Armitt, chairman of the National Infrastructure Commission, told The Telegraph: “Politically, it’s a very difficult issue. Many people will say road pricing is inevitable. Personally, I don’t see why it should be any different to anything else.
“We pay for all our other infrastructure services as we use them.” He said drivers “could pay a different rate, per time of day, per type of road you were driving on, anywhere in the country and you just get a bill because it would all be monitored remotely”.
A survey by car finance lender Carmoola found 29 per cent of people have had to cut their driving in 2024 due to escalating expenses, GBNews reports. And 30 per cent of 17 to 24-year-olds and 25 per cent of 35 to 44-year-olds said they are under financial pressure to sell their cars as they are forced off the road due to rising costs.
Aidan Rushby, founder and CEO of Carmoola, added: “The news about the introduction of a pay-per-mile road tax could exacerbate this trend, driving more motorists off the road. It’s clear that Brits are already struggling, and the new initiative, planned to launch in October, will have serious implications, especially for younger drivers and those living in rural areas who rely on their cars for essential activities like work and education.”
With limited public transport options in rural regions, such a tax risks further isolating vulnerable populations. The average motorist could face costs of around £444 per year, while those in rural areas may see bills increase by £600 for covering 10,000 miles yearly.
Motoring services company RAC said a “replacement form of taxation needs to be introduced to avoid losing billions”. It called for the new system to be “simple and fair to drivers of both conventional and electric vehicles”.
But in an official statement, a Government spokesperson said: “We have no plans to introduce road pricing. We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets.”